High-street lenders are still hungry for mortgage business and the recent increase in swap rates and recent downgrades don’t seem to have put them off.
There are now at least 23 mortgage lenders offering new customers sub 2 per cent mortgage rates and lots of them have arrangement fees well below £2,000.
The banks and building societies are really trying to offer decent rates to boost their lending figures and such super low rates are a great incentive for borrowers to get on the property ladder.
Providing new borrowers have at least a 15 per cent deposit they can secure some great rates and Coventry’s new two-year fix at 3.05 per cent is particularly good. It has a free valuation and a low £999 arrangement fee.
There have been a few mortgage rate hikes recently and Nationwide Building Society and Norwich and Peterborough Building Society have led the way. Some of Nationwide’s four and five-year fixed rates increased by 0.4 per cent and N&P’s market leading five-year fix rose by 0.35 per cent.
The market for borrowers looking for large mortgage loans has also been boosted by Barclays and Accord Mortgages. Both lenders are really looking to stand out in this market and they have some great deals.
Barclays’ new two-year fix at 1.89 per cent is particularly low and it has a maximum loan size of £2m. Accord Mortgages has a 1.94 per cent two-year fix and the maximum loan size is impressive at £3m.
After speaking to a few of the product managers at some of the bigger lenders it is fair to say that they know there is a huge pent up demand for mortgages. They also know that they need to improve their acceptance criteria but this has to be done in a compliant and sensible manner.